The collateral for this loan is nearly 25 acres of land that consists of 312 partially developed townhome lots located in Nampa, ID (approximately 19 miles west of Boise, ID). Most of the 312 units are presold as investment properties to the borrower’s clients. Since acquiring the site, the borrower has completed approximately 80% of the development of the first phase. The individual buyers will pay off this loan as they each acquire construction financing. The first construction loan is expected to be ready in July of 2020 with all the lots expected to be paid off by the end of the year.
Loan Amount: $6,400,000
Term: Nine months with an optional nine-month extension at maturity.
Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (Principal Balance < $100,000) Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.